India's industrial production declines 1.1% in August 2019

15 out of 23 industry groups in the manufacturing sector shows negative growth

India's industrial production (base year 2011-12=100) declined 1.1% in August 2019, while snapping consistent growth for last 25 straight months. Also, the pace of decline in industrial production was highest in August 2019 for 2011-12 base year data

As per the revised data for industrial production of July 2019, the growth is higher at 4.6% compared with 4.3% growth reported provisionally.

The manufacturing sector output dipped 1.2%, while electricity generation also declined 0.9% in August 2019 contributing to the overall decline in industrial production. Further, the mining sector production also rose mere 0.1% in August 2019.

As per the use-based classification, the output of capital goods continued to decline for eight straight month and record high pace of 21.0% in August 2019, while the output of infrastructure/ construction goods growth also declined 4.5% in August 2019. The growth intermediate goods production halved to 7% in August 2019, while the output of primary goods rose at slower pace of 1.1%. Within the consumer durables, the output of consumer non-durables increased 4.1%, but that of consumer durables dipped for third straight month at 9.1% in August 2019.

In terms of industries, 15 out of 23 industry groups in the manufacturing sector have shown negative growth during the month of August 2019 as compared to the corresponding month of the previous year.

The industry group motor vehicles, trailers and semi-trailers has shown the highest negative growth of (-) 23.1% followed by (-) 21.7% in machinery and equipment and (-) 18.0% in other manufacturing.

on the other hand, the industry group basic metals has shown the highest positive growth of 11.8% followed by 11.3% in wood and products of wood and cork, except furniture; articles of straw and plaiting materials and 10.3% in wearing apparel.

Powered by Capital Market - Live News